Re: Economist nonsense Soc.Sec. and houses

ZerkonXXXX wrote:
> On Thu, 20 Nov 2008 22:00:11 -0800, Peter Franks wrote:
> 
>> Mason C wrote:
>>> That is a failure of the unregulated free market -- overselling and in
>>> many cases outright deception if not criminal fraud.
>> What is an example of the deception and/or fraud?
> 
> Dang where to start.
> 
> Deception and fraud was made in the rating of the bonds that were 
> composed of very dicey mortgages which were then sold off as sound 
> investments. I believe this is what did the real 'setting off' not the 
> individual loans themselves nor the building of the houses.
> 
> Banks were deceptive to the home buyer by telling them 'it was ok' to 
> take out loans based on the 'projected(!!)' value of that home. They
> were also deceptive to their own shareholders by not concerning 
> themselves all that much, it seems, with the ability of the buyers to
pay 
> off the loan.
> 
> Then we come into the world of derivative swaps, institutional
short/long 
> selling vis a vi insider trading. In the end however we must address the

> core deception of a debt based economy. 

Can credit be legislated away?  Should it be legislated away? 
Personally, I strive to never buy on credit (mortgage and vehicle being 
2 exceptions).

Some interesting, and I think inspired, resources on debt and finance 
management:

http://www.providentliving.org/content/display/0,11666,7417-1-4006-1,00.html
http://www.providentliving.org/content/display/0,11666,7418-1-4007-1,00.html
http://www.providentliving.org/content/display/0,11666,7419-1-4008-1,00.html
http://www.providentliving.org/content/display/0,11666,7420-1-4009-1,00.html

and

http://www.providentliving.org/pfw/multimedia/files/pfw/pdf/88720_33293_OneForTheMoney_pdf.pdf

>> How come I didn't get suckered into the deception and fraud when I
>> refinanced several years ago?
> 
> Was it a 'consolidation loan'? 

No.

> Who now owns the loan? 

The bank.